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                                                                EXHIBIT 99.1





                                August 14, 1997



Mr. James W. Crook
Chairman of the Board
Melamine Chemicals, Inc.
P.O. Box 748
River Road, Highway 18
Donaldsonville, LA  70346

Dear Jimmy:

This follows my June 27, 1997 letter in which Ashland Inc. expressed an
interest in purchasing all of the issued and outstanding shares of Melamine
Chemicals, Inc. not owned by Ashland.  We continue to have such an interest.
More than six weeks have passed and we have not yet received a formal response
to our expression of interest, although you and I did have a telephone
conversation.

We are pleased that you have retained Goldman Sachs.  We have received a draft
Secrecy Agreement from Goldman on behalf of Melamine.  However, we are
unwilling to sign this agreement in its current form because of the provisions
in the "standstill" paragraph.  We believe that it is not in the best interests
of the shareholders of Melamine for potential buyers to be encumbered by such
restrictions.

Having said this, it continues to be our desire to engage in a friendly
negotiated transaction and, subject to a due diligence review and the signing
of a definitive agreement containing customary terms and conditions (which
would include, among other things, that no material adverse change will have
occurred with respect to the business, financial condition, capital structure
or prospects of Melamine), Ashland is hereby increasing its conditional offer
to a price of $14.75 per share to be paid in cash to all shareholders at
closing.  This offer is not contingent upon financing.  We are prepared to act
quickly to bring a transaction to closing.  While it continues to be our very
strong preference to work with you toward a negotiated transaction, in the
event you do not wish to proceed jointly at this time, Ashland will consider
alternative approaches.

I am asking for a definitive response to this offer from you no later than
close of business on August 25, 1997.  I look forward to your response.

                                        Sincerely yours



                                        Paul W. Chellgren